Overall home sales are dropping. See August 2014 figures compared to year ago. Prices will likely stall or trend downward soon. This will soon affect new home sales. Thumbs down on the whole home building sector.

2013 was a strong overall year for the market, so there's a good chance consumers will continue coming forward to buy the homes they've coveted for some time now. The stock performed extremely well over the past two years, and the spring and summer months represent the typical peak home buying seasons.

Highly profitable housing developer diversified into 50 US markets without a focus on building for a particular life phase. (Some builders focus on products for empty nesters, others just the luxury market, etc. -- PHM builds for all life phases).

This group has put itself into a strong position for rebound. It has had to downsize over the past few years, but it has managed to get back into the black across the board. As long as the money is poured back into the right areas, this company is going to boom.

The new home building sector will outperform the market for many years to come. Evidence that the housing market is on the way back up is irrefutable. The pent up shortage of housing will ensure new home construction is strong.

Paired with NVR. Their P/B and P/S are very close but NVR is consistantly more profitable due to a better business model. The only way I see this going wrong is if there is significant increases in land pricing (as in 2006), if the significantly DC area underperforms the US as a whole, or if PHM is bought out for some reason.

I had my house on the market in TX for 6 months, selling below appraisal, even considerably below tax appraisal - which is significant in TX since we have no state income tax and make it up on property taxes. My point is, there is at least a 1-2 glut of houses already on the market now for sale. With an unsure economy and the third (often tumultuous) year of a bull market that often leads to a bear, about at a 3-1 ration, bull/bear. So, these companies have to stay afloat for years to even begin to work through current glut of homes. These companies make money building and selling homes - there are no buyers. Expect a tough couple of years and even some possible bankruptcies. These guys are taking on large amounts of debt, just to stay alive.